MyoKardia Surges by 57% After Bristol-Myers Set to Acquire MYOK for $13 Billion in Cash

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

MyoKardia to attain $225 per share, a premium of 61% over the biotech stock’s Friday closing price.

The biotech company, MyoKardia Inc. (MYKO) is set to be bought by the drug giant Bristol Myers Squibb Co. for approximately $13.1 billion in cash. Bristol-Myers have made this deal for expanding its offering of heart therapies.

The 2021 Backdoor Crypto Portfolio (free)

Even if you’re not actively in crypto, you deserve to know what’s actually going on...

Because while leading assets such as Bitcoin (BTC) and Ethereum (ETH) are climbing in value, a select group of public “crypto stocks” are surging right along with them. More importantly, these stocks are outpacing the returns these leading crypto assets aren already producing.

Click here to get the full story… along with our long list of backdoor Bitcoin strategies. It’s free.


Bristol Myers will be making this acquisition after the company pulled off the largest pharmaceutical deal in history just a year ago. A deal which was worth $74 billion, the company acquired the multiple-myeloma drug leader Celgene Corp.

According to a statement, MyoKardia will receive $225 a share, a premium of 61% over the biotech stock’s Friday closing price of $139.60.

The stock price made a massive move followed by acquisition news and so far, MYOK has surged above 50% in the market today. As of 01:30 P.M. EDT, the stock was trading at $220.29 up by almost 57%. MYOK’s previous close on Friday was $139.60 before the stock kicked off today’s trading session at $220.68.

MyoKardia’s specialty in providing therapy for cardiovascular diseases has attracted Bristol Myers to acquire the firm enhancing its product line for providing treatment against heart diseases. Bristol Myers considers MyoKardia to be a multi-billion-dollar asset for the company in the future.

The CEO of Bristol Myer, Giovanni Caforio stated:

“We’ve been thinking about other ways we can strengthen the company, and in particular, the other side of the decade. This is a disease with no available treatment, and the value is very significant.”

The acquisition of MyoKardia further strengthens Bristol Myers’ portfolio, pipeline and scientific capabilities, and will add a meaningful medium- and long-term growth driver for the company.

Recently, MyoKardia developed a pipeline of therapies for heart diseases and obtained all the primary and secondary endpoints for its experimental drug mavacamten during Phase 3 obstructive hypertrophic cardiomyopathy testing. Moreover, it is anticipated that mavacamten will be submitted to the FDA for approval in the first quarter of 2021.

The following deal between both the companies is expected to be completed by the end of the fourth quarter of 2020, with the boards of both firms already approving this deal.

The buying company plans to fund the deal with both cash and debt. The acquisition of MyoKardia Inc, (MYOK) would be accretive to Bristol Myers’ non-GAAP earnings by the start of 2023, with the company working on the commercialization of mavacamten by that time.

The acquisition will add to Bristol’s debt but will diversify its portfolio and will benefit in the longer run. Caforio said that this is not an acquisition that will put significant strain on their R&D spend.

Sign up for our FREE Newsletter and get:

Leave a Comment

Your email address will not be published. Required fields are marked *

Sign up for our FREE Newsletter and get:

Get The Best Stocks To Trade Every Day!

Join now to get the pre-market morning brief 100% free

We do not sell or share your information with anyone.

Get Best Morning Financial Newsletter... 100% Free

Best stocks ideas

Analysts’ Upgrades & Downgrades

Important Earnings

Insider Watchlist

We do not sell or share your information with anyone.

Get The Best Stocks To Trade Every Day!...100% Free

We do not sell or share your information with anyone.